GVEA Board Authorizes $7.2 Million in Capital Credit Payments
Press Release - December 1, 2017
Accelerated payment is the first in the co-op's 70-year history
FAIRBANKS – The Golden Valley Electric Association board of directors has authorized payment of $7.2 million in capital credits to members who had service in 1992 and 2016.
The co-op typically retires capital credits after 25 years. Never has the co-op retired capital credits after one year.
In December 2016, GVEA filed an Electric Rate Study with the Regulatory Commission of Alaska (RCA). In this filing, GVEA requested an annual revenue decrease of about $3 million. While this case is before the RCA, GVEA rates are frozen which left GVEA with a very large margin for 2016.
The board authorized an accelerated payout of 25 percent from 2016’s capital credits or $4.8 million. “The early retirement of the 2016 portion was intended to provide a benefit to our current membership,” said Rick Schikora, chairman of the board.
GVEA is a member-owned, not-for-profit cooperative. Any revenue left at the end of each year is allocated to members based on the amount of power purchased throughout that year. These are known as “margins.” The co-op reinvests margins in projects and maintenance, such as building substations or replacing poles or lines. After a period of time, typically 25 years, these margins are returned to members in the form of capital credits refunds.
Active members can expect a check for payments over $100. Amounts under $100 will appear as a credit on their electric bills. Former members will be issued checks if the refund exceeds $25. All refunds will be distributed by the end of December.
You can access more information on GVEA’s website, which has a page dedicated to the topic of Capital Credits. www.gvea.com/resources/capitalcredits